G1 - General Financial MarketsReturn

This article deals with the financial stability under conditions of the current economic system, focusing on more detailed analysis of the Czech Republic by using specific indicators of the financial stability in the context of the global situation affected by the financial crisis. The first and second part of the paper will provide a brief overview of the evolution of economic thought to the present, trying to bring the most realistic and objective critical assessment of the current economic system. A practical example of the financial stability analysis will be shown on the case of the Czech Republic in the third section. Through selected indicators of financial stability, the overall health of the financial sector will be assessed. This will be examined for the period from 2006 to 2011, partly in 2012, taking into consideration the development of global economic situation. Although the overall financial stability in the Czech Republic may seem stable, further development will depend substantially on the financial and economic situation in other important states. In the end, the significance of psychology in the economy and the importance of moral principles will be pointed out.